What are the Types of e-Commerce Businesses?
To better fit in the online business space, you first need to identify two focal points: first, your target market and second, your services or offerings. After which, we can identify under what type of e-commerce your entity falls under and lay the groundwork.
In this infographic, we’re covering the four main types of e-commerce business models and how each caters to the requirement of your enterprise.
What are the different e commerce business models?
1. Business-to-Business (B2B)
The B2B e-commerce business model is a pretty straightforward one. It is where a business offers its products to other businesses, which are usually purchased in bulk batches. In this case, the services being offered are mostly premium and are big-ticket items, that's why it acquires a longer sales cycle compared to the other models.
2. Business-to-Consumer (B2C)
B2C is the most prevalent type among the bunch as most e-commerce follows this structure. If your e-commerce sells products such as clothing, food, supplies, and the likes directly to the end-users, you belong in this track.
This model can either be a mix of brick-and-mortar shops and online store, or a standalone entity of either one.
3. Consumer-to-Consumer (C2C)
Also known as the peer-to-peer (P2P) type, C2C allows consumers to sell their items to their fellow consumers through a digital platform that further expands their customer base. The C2C channels we have good familiarity with are the Meta (Facebook) Marketplace, Etsy, eBay and Craigslist.
4. Consumer-to-Business (C2B)
C2B involves a professional selling its services to companies, with the latter maximizing the individual's potential for their requirement. In this scenario, businesses bid for the opportunity to get the consumer's skills and use them for their leverage. Upwork is a great example of this model.
Combined with your ultimate goal in establishing your online venture, the type of e-commerce you choose to work on will be the basis of everything you do from the get-go. This big bucket will help you capitalize on your opportunities and eliminate the threats that can potentially undermine your virtual entity.
Let us help you push your e-commerce management towards an easier landscape. With the right people and technology propping you up in your back-office processes, you bring more value to your business. D&V Philippines have in-house experts geared with top-of-the-line technology and profound finance and accounting expertise to get your numbers in order. You can read our guide Succeeding Online: Refining Your Accounting Processes Through Technology And Automation to know more about our e-commerce services, or contact us today to learn more.